London (Platts)--11Mar2008

The International Energy Agency Tuesday trimmed its estimates of world
oil demand and non-OPEC oil supply for 2008 by around 100,000 b/d each.

In its latest monthly report, the Paris-based IEA said it now expected
world oil demand to average 87.54 million b/d, 80,000 b/d less than it had
previously predicted.

The downward revision stemmed from weakness in oil demand in the OECD,
where the IEA cut its demand estimate for this year by 190,000 b/d to 49.27
million b/d.

The revised outlook follows mild weather in January and a "carry-through"
of weaker demand growth from the fourth quarter of last year, the IEA said.

The agency's new figures show expected growth in world oil demand this
year of 1.72 million b/d, up 60,000 b/d from last month's report as downward
revisions to 2008 demand were outweighed by bigger changes to 2007 estimates.

On the supply side, the IEA trimmed its estimate of non-OPEC supply for
this year by 100,000 b/d to leave it at 50.6 million b/d, up 900,000 b/d from
last year's average production.

As a result, the IEA's estimate of the 'call' on OPEC crude and stocks
for 2008 was left unchanged at 31.8 million b/d.

This is below the cartel's current production, which the IEA estimated at
32.12 million b/d in February, down from 32.24 million b/d in January.

The IEA said output fell last month from several OPEC countries,
including Saudi Arabia, Iran. Nigeria and Angola, with the declines partially
offset by a rise in Iraqi production.

Excluding Iraq, the 12 members bound by output agreements produced an
29.75 million b/d in February, down from 30.02 million b/d in January but
still above their collective 29.673 million b/d target.

Total world oil production rose to 87.47 million b/d in February, up from
87.29 million b/d in January, the IEA said, thanks to higher volumes from the
Americas and the former Soviet Union.